Ethereum (ETH) Price Tests $3,000 Support as Downtrend Strengthens

Ethereum (ETH) price has dropped 7% in the last 24 hours, with bearish momentum signaling the possibility of a further decline below $3,000. The recent death cross in ETH’s EMA lines shows the growing downtrend as sellers continue to take control.

If key support levels are breached, ETH could test $2,927 or even fall to $2,358, its lowest point since November 2024. However, a reversal could see ETH targeting resistance at $3,334 and beyond, offering hope for a recovery.

Ethereum Sellers Took Control

Ethereum DMI chart shows its ADX has risen sharply to 21.5 from 10.2 a day ago, signaling growing trend strength after a period of low momentum.

The ADX, which measures trend strength regardless of direction, uses thresholds where values below 20 indicate a weak or no trend, and values above 25 suggest a strong trend. With the ADX now above 20, ETH is moving away from sideways action toward a more defined trend.

ETH DMI. Source: TradingView

The +DI, representing bullish pressure, has dropped significantly from 19 to 10.9, while the -DI, reflecting bearish pressure, has surged from 21.2 to 38.4. This shift highlights that sellers are now in control, pushing ETH into a clear downtrend.

The combination of a rising ADX and stronger bearish pressure confirms that this trend is gaining momentum, signaling the potential for further downside in ETH price movement.

Whale Addresses Are Accumulating ETH

The number of wallets holding at least 1,000 ETH, known as whales, has started to recover after a sharp decline between January 15 and January 19, when the count dropped from 5,690 to 5,663.

Currently at 5,685, this figure remains slightly below its recent peak of 5,690, the highest level since February 2024, but still represents a relatively high concentration of whale activity.

Addresses with Balance >= 1,000 ETH. Source: Glassnode

Tracking whales is essential because their movements can significantly impact the market. A high number of whale wallets, such as the current level of 5,685, indicates strong accumulation among large holders, often suggesting confidence in ETH’s long-term potential.

This recovery in whale activity could indicate increased buying interest, possibly supporting Ethereum price stability or signaling bullish sentiment in the market.

ETH Price Prediction: Can Ethereum Fall Below $3,000?

ETH’s EMA lines revealed a death cross yesterday, signaling bearish momentum. Over the past 24 hours, ETH has dropped more than 7%. If the downtrend continues, Ethereum price could test $2,927.

Further downside could push it to $2,723 or even $2,358, marking its lowest level since early November 2024.

ETH Price Analysis. Source: TradingView

Alternatively, if ETH price can regain positive momentum and reverse the current trend, it may test the resistance at $3,334. Breaking this level could pave the way for further gains, with potential targets at $3,473 and $3,745.